Moody’s Says 22 States Are Already in Recession Despite Strong Overall GDP

Moody’s said debt, slowing wage growth, and fading job creation are squeezing lower- and middle-income households despite strong headline numbers.

A sign for Moody's rating agency at the company headquarters in New York City, in an undated file photograph. Emmanuel Dunand/AFP via Getty Images

Moody’s Analytics chief economist Mark Zandi says 22 U.S. states are already in recession, despite that national figures show the overall economy growing at a 3.8 percent pace and unemployment holding at 4.3 percent.

In a new interview with Fortune that builds on his late August analysis, Zandi said that much of the country’s economy is contracting beneath the surface, with many lower- and middle-income Americans on the cusp of financial distress, weighed down by debt and slowing wage growth despite steady employment levels.